#BAD14 #Inequality

Today is Blog Action Day, and in 2014 the theme is Inequality. I’m afraid I’m going to cheat, and post stuff I’ve written earlier. Some is a bit dated (anyone remember Michael Gove?), but I think the core message is still relevant…

It’s the equality, stupid

Published in the Church Times, 27 July 2012

YOU wait ages for a story on welfare statistics, and then, on 14 June, three come along together.

First to arrive was the publication of the latest Happy Planet Index, bringing the good news that people in the UK are better off than others in the European Union or G8 countries, based on the perceived level of happiness, life expectancy, and environmental factors – but worse off than those in many developing countries.

Then came mixed news from the Institute of Fiscal Studies’ annual report Living Standards, Poverty and Inequality in the UK, which found a sharp fall in incomes in 2010-11, but also an improvement in equality across all income levels.

And tagging along behind were announcements from the Secretary of State for Work and Pensions, Iain Duncan Smith, on child poverty. At present, the Child Poverty Act 2010 defines child poverty as children living in households that earn less than 60 per cent of median income. The UK does not suffer the squalor and starvation of previous centuries; so using a measure of relative poverty reflects levels of social exclusion: whether these children are excluded from the average family’s ordinary living-patterns and activities (Comment, 15 June). But Mr Duncan Smith wants to change the way in which child poverty is measured.

He argued that the problems of worklessness, welfare dependency, addiction, educational failure, debt, and family breakdown are causes of child poverty. On the other hand, the thesis of The Spirit Level, by Richard Wilkinson and Kate Pickett (Penguin, 2010), is that these are symptoms of inequality, and therefore it is important to retain a relative measure of child poverty, and to have policies that tackle this.

Professor Wilkinson and Professor Pickett studied rich countries, and the differences in inequality between them. They found that a smaller gap between rich and poor in terms of income equality means a happier, healthier, and more successful population (Comment, 26 March 2009).

There is no relation between income per head and social well-being in rich countries; so more economic growth will not necessarily lead to a happier or healthier population. But, if the UK were more equal, we would be better off as a population. The rich would not lose out in order to benefit the poor. The 99 per cent would benefit – perhaps, even, the 100 per cent – although poorer people would gain the most.

As well as varying from country to country, inequality also varies over time, and it can be influenced by government policy. Britain became more equal during the World Wars, as the Government saw that making people feel they were sharing the burden was a way to gain popular support for the war effort.

During the mid-1980s and early ’90s, inequality grew rapidly, almost certainly reflecting the neo-liberal economic policies of the Thatcher and Major Governments.

Professor Wilkinson and Professor Pickett argue that it would not take a revolution to reduce income inequality. All the data in The Spirit Level come from rich developed market democracies, and the analysis is only of the differences between them.

But a transformation is still required, and the authors outline two direct ways of reducing income inequality: first, reduce differences in pay before tax (as happens in Japan) – for example, by minimum-pay policies, strong trade unions, employee representation on boards, and through a public ethic intolerant of the bonus culture; and, second, redistribution by taxes and benefits (as happens in Sweden), not least through more stringent action to prevent tax-avoidance.

Other policies can have indirect influence, including education policies and the management of the national economy. There is a huge volume of evidence available to policy-makers, which they need to filter. The danger is that some evidence is played down, in order to avoid challenging the status quo.

ON THE day that Professor Bob Holman wrote about how Christians need to lead the battle for equality in Britain (Comment, 21 October 2011), St Paul’s Cathedral closed its doors to the public for the first time since the Second World War, amid fears that the Occupy demonstration posed a risk to health and safety. That, and the subsequent eviction of the camp, reflected negatively on the Church.

But Occupy has also been criticised for a perceived lack of clarity in its demands. Policy is a complex area, and dangerous to simplify. The gift of The Spirit Level is that it enables concentration on one area: reduce inequality, and see substantial improvements in murder rates, mental illness, obesity, imprisonment, teenage births, and levels of trust.

Occupy, the Church, and any organisation or individual could evaluate all government policy in terms of one question: what effect would this policy have on income equality? This question would act as a common cause, and bring clarity to the engagement.

For example, what effect would replacing GCSEs with exams akin to O levels and CSEs have on income equality? I would want to investigate whether lower-income children would be less likely to take O levels, while recruiters would prefer candidates with O levels, and hence inequality would increase indirectly.

As policy is so complex, often the indirect effects on inequality are not obvious. It is important, therefore, to enlist experts in each field and discuss, listen, and learn. Nevertheless, the Child Poverty Act puts the onus on government ministers, such as the Education Secretary, Michael Gove, to show how their policies in education, health, and social services are governed by the goal of poverty-reduction.

So, even without all the answers, we can still put the equality question to our representatives and policy-makers, and ask them to ensure that the aim of reducing income inequality underpins all policy discussions.

The website WriteToThem has information about how to contact your MP, MEP, member of devolved administration, or local councillor. You can also follow a link to TheyWorkForYou, to find out more about your MP’s interests. It helps to know whether they have spoken on an issue and how they have voted in the past, in order to target and personalise your communication.

Whichever method we choose, let us work together as the 100 per cent towards the equality and benefit of the 100 per cent.

www.equalitytrust.org.uk; www.writetothem.com; www.theyworkforyou.com; http://epetitions.direct.gov.uk

Peril of eating all the pie

Review of Joseph E. Stiglitz. The Price of Inequality. London: Allen Lane.
Published in the Church Times, 12 October 2012

“IT MAY be true that ‘the poor always ye have with you,’ ” writes the 2001 winner of the Nobel Prize for Economics, “but that doesn’t mean that there have to be so many poor, or that they should suffer so much.”

The first half of The Price of Inequality is utterly compelling. Focusing on the United States, Professor Stiglitz stacks up the evidence for growing inequality of wages, total income, and wealth, and the sharp acceleration during the Great Recession, since 2008. The bottom and middle are now worse off than in 2000, while income growth has been primarily at the top one per cent. He also, importantly, busts the great American myth of equality of opportunity (related to both income mobility and lifetime earnings), often used somehow to justify inequality.

Market forces have shaped inequality; government policies have shaped those market forces (much of the inequality that exists is the result of government policy); and the one per cent have used their power to shape policy to their own ends. The wealthy often do not so much create wealth as take wealth away from others through rent-seeking – not just in the US. Recall, for example, HMRC’s waiver of Vodafone’s potential £7-billion tax bill.

The US and other widely un-equal countries are paying a high price for this inequality. Their economies are inefficient in their use of resources, and are neither stable nor sustainable in the long term. Further, the US is staring into the abyss of a breakdown in social cohesion and trust. Democracy it-self is in peril, warped, as it has been, from one person, one vote, into one dollar, one vote. Yet, despite everything, through its ownership of the media, the one per cent has succeeded in shaping public perception, and convinced the 99 per cent that they are all in it together.

At this point, and in his description of the battle fought over the laws and regulations that govern the economy, Professor Stiglitz starts to flag. But he picks up again when he returns to economics, and the battles over fiscal policy (tax and expenditure) and monetary policy (interest rates and inflation).

In his discussion of the policies that may or may not pull the US and European economies out of the Great Recession, I find three key messages: austerity doesn’t work (George Osborne, take note); progressive taxation – that is, shifting the burden from the poor to the rich – will stimulate demand and growth, as well as reduce inequality; and addressing unemployment should be prioritised over fighting inflation.

In the final chapter, Professor Stiglitz summarises his multiple solutions to inequality and its causes, but, given the power of one per cent, he has to ask: “Is there hope?” Only, it seems, if the one per cent learn before it is too late that their welfare is bound up with the way the 99 per cent live.

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Must. Not. Get. Sarcastic. Ach failed again.

Oh dear, I was writing about Silent Spring by Rachel Carson, then I was writing about modern criticism of the book, then I was writing about environmental regulation vs economic freedom, then I was quoting George Osborne, and it all went downhill from there. But I enjoyed the rant 🙂

Let us hear from George Osborne, Chancellor of the Exchequer. In October 2011, he told the Conservative Party Conference that saving the planet risked “putting our country out of business”. A few weeks later, in the Autumn Budget statement, he said: “If we burden [British businesses] with endless social and environmental goals – however worthy in their own right – then not only will we not achieve those goals, but the businesses will fail, jobs will be lost, and our country will be poorer.”

Hmmm. Now I don’t know what planet George Osborne is living on. Maybe it’s in an alternative universe where God created the economy ex nihilo. But my planet is the one which underpins all economic activity, the one in which economic actors live and move and have their being. You know, the planet with the environment that provides the soil that we grow food in, the fresh water that we drink, the fossil fuels that power most of our activities, the forests and minerals that provide our raw materials, and lots of natural processes that clean up the muck we throw into the air, water and ground – up to a point.

On my planet, soil is finite, water is finite, fossil fuels and minerals are finite, and nature’s tolerance margins are finite. In this round hole, infinite economic growth makes a very square peg.

So to Mr Osborne I say: “If we burden the planet with endless economic growth – however attractive in its own right – then not only will we not achieve that growth, but the energy sources we depend on and the soil we grow food in and the water we drink and the air we breath will fail, health and contentment will be lost, and we will die; oh and businesses will fail, jobs will be lost, and our country will be poorer too.”

Someone needs to put him under a restraint, for his own good. We could call it an Obstructing Social Behaviour Order, or OSBO for short.

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Sharing stuff and working together, part 2

More and more websites are being developed that are enabling people to share and work together. And the best are bringing people together in real life too. In Part 1, I looked at websites like LETS and Freecycle that help you share stuff and skills. In this post, I’m looking more at encouraging each other and working together on a common goal.

“I’ve got this great idea, but I need other people to help me make it happen” If We Ran the World aims to help people with good intentions and broad visions turn them into “tangible, do-able microactions that anyone and everyone can help you to do. All of us can achieve more than one of us, and everything starts with a microaction.” Its home page is an almost blank screen with the challenging… If I ran the world, I would What would you do? Then what small steps could you take to make it happen? What help would you need? And how could you help others?

“I’ll do it, but only if you do it too” PledgeBank allows users to set up pledges and then encourages other people to sign up to them. A pledge is a statement of the form ‘I will do something, if a certain number of people will help me do it’. The creator of the pledge then publicises their pledge and encourages people to sign up. We can’t be sure people will bother to carry out the pledge, but “We believe that if a person possesses a slight desire to do something, and then we help connect them to a bunch of people who also want to do the same thing, then that first person is much more likely to act.” The site provides guidance to help make your original pledge a success, and you can get a special version of PledgeBank for your organisation. Example of a successful pledge: “I will Put £100 into the fund for setting up the Healing Gardens Cooperative and to start the deposit for buying the Gardens Home house but only if 10 people connected with myself and the Retreat Centre or Gardens will do the same will do the same.” [Update: The PledgeBank website was closed in 2015.]

The rest really belonged in part 1, but anyway…
 

“There are too many cars on the road!” Liftshare helps people to travel more sustainably by sharing their journey. You can share a car on any journey you make, from the daily travel to work or the school run, to a one-off journey to a festival. You can even search for people to share a journey by taxi, bike or on foot.

“There’s a long waiting list for allotments, but I’m not doing anything with my garden” Landshare connects growers to people with land to share. It describes itself as “for people who: want to grow their own fruit and veg but don’t have anywhere to do it; have a spare bit of land they’re prepared to share; can help in some way – from sharing knowledge and lending tools to helping out on the plot itself; support the idea of freeing up more land for growing; are already growing and want to join in the community.” There’s a good map of Land offered, Growers and Helpers. Organisations can have their own area on the site, or you can get together with other members to form groups. [Update: Landshare has been closed too, but there are local schemes such as Dyfi Land Share in Machynlleth and Edinburgh Garden Partners. The Gardenshare scheme in Totnes is no more but the website still offers guidance to starting a local scheme.]

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Sharing stuff and working together, part 1

So you want to simplify your lifestyle, and reach out to your neighbours and local community. Maybe you want to learn a new skill, or your drill has broken and you don’t want to splash out on a new one, or you have a drill gathering dust in the cupboard. Or you want to do something new, but it’s hard work to make things happen by yourself, and you would like the assurance that others share your vision or have the skills and willingness to help.

More and more websites are being developed that are enabling people to get in touch with each other. And the best are bringing people together in real life too.

“I want to share my stuff and skills with other people, and they have stuff and skills that I need too”

Local Exchange Trading Systems or Schemes have been around for a long time. They are local networks in which people exchange all kinds of goods and services with one another, without the need for money. LETS use a system of community credits, so that direct exchanges do not have to be made. People earn LETS credits by providing a service, and can then spend the credits on whatever is offered by others on the scheme: for example childcare, transport, food, home repairs or the hire of tools and equipment. And the service is usually valued by time, so for example an hour of childcare will ‘cost’ the same as an hour of home repairs. Contact details for LETS in Ox, Bucks and Berks.

Ecomodo lets you “lend and borrow each other’s everyday objects, skills and spaces with confidence.” They’ve thought carefully about the ‘with confidence’: the borrower and the item is rated after each transaction; lenders can request security deposits; they offer insurance. You can create a ‘lending circle’ in your neighbourhood, so it is closely tied to real world communities. For example, Low Carbon West Oxford has a lending circle. Update 20 March 2015: Ecomodo has now closed.

Bid & Borrow is very similar, but I think less user-friendly. Again, you can create a ‘sharing network’ in your neighbourhood, and on both sites you can post a wanted ad. Companies can advertise their goods for hire, but I think this detracts, and Bid & Borrow’s local search doesn’t work well. But still, there might be something you need here that isn’t on Ecomodo. Update 22 March 2016: Bid & Borrow has apparently closed.

Finally, there’s Streetbank. It’s the simplest of the sites, which might be a benefit. There are no lending circles; you get to see people within one mile of you, and all their things. There is no mention of ‘confidence’ or charging for items, but then maybe we need to trust people more and get away from money-based transactions. And you when you register, it is a condition that you add one thing that you would be prepared to help with, lend or give away; you can’t get away with not participating.

“I’ve got all this stuff I want to get rid of, but I don’t want it just to go into landfill”

Freecycle groups match people who have things they want to get rid of with people who can use them. You can either offer something, or post a ‘wanted’ message. They say: “Our goal is to keep usable items out of landfills… Another benefit of using Freecycle is that it encourages us to get rid of junk that we no longer need and promote community involvement in the process.” I wanted to get rid of the white gravel in my garden, so I offered it on Freecycle. Almost immediately, someone who wanted it got in contact, and they even took it all up for me! Freecycle groups in Ox, Bucks and Berks

There are websites which offer online swapping, such as Swapshop or a section of Gumtree. But there are also lots of swapshops happening in real life. There’s often no actual swapping involved. Just bring along stuff you don’t want and/or take away someone else’s stuff you do. Community Action Groups maintain a diary of swapshops in Oxfordshire. Is there anything similar in Berkshire or Buckinghamshire?

 

 

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